Key Result Areas Explained and Applied KRA KRI KPI

Take ownership of your own and/or your teams KRA’s or KPI’s (KRI) to grow your returns on effort. Choose the right effort, get agreement and learn to say NO!

This will help you understand key result areas. You will also be able to explain to your team in simple to understand terms what Key Result Areas are and how to apply them effectively. KRA’s are also known as performance management or communication and informing to maximise your INCOME!.

Clearly defined key result areas helps you take ownership of results in:

your business involvement

teams you are part of

projects you need to deliver to

your personal career growth

Key results areas are also known as “Key Performance Indicators” or KPI’s. In the following text we explain what exactly key result areas are and how you apply kra’s in performance management. We aim to give you simple and practical answers in the form of a “Question and Answer” style of writing with some more in depth explanations and notes as we progress through the conversation.

Ask

I often hear people in the company talking about Key Results Areas. What are Key Results Areas and what can I gain from it?

To business managers kra’s mean business results dash board or key performance indicators.

People in careers manage their careers by understanding and reporting on key results areas.

All key performance areas focus on how business generates value to clients, the processes and your roles or functions.

The answer is KRA is an acronym for Key Results Area in business or projects. Having clearly defined Key Results Areas enables you to take ownership of your business, team, career or job and to accept responsibility for those areas where achieving business and career results are your responsibility.

Obtain timelycommunications and feedback that will allow you to stay aligned and change direction when needed.

Promote an environment of alignment and self-management.

Key Results Areas enable you to maximize the Contribution Zones (overlap) between yourself, the company and the customer, as well as the customer’s clients. Furthermore, it matches your individual aspirations with the company and customer requirements.

The diagram below indicates the all-important area of overlap in which you can make Key Results Areas work for you.

Managing your performance will be no headache if you make the steps below a personal ritual that you follow conscientiously at regular intervals.

Managing your performance

Review regularly – Keep a copy in your diary.

Has your job focus changed?

Has the company changed focus?

Drop unfocused Key Results Areas and add new ones.

Regularly check progress.

Are you on target to reach your goals?

Who can help?

What can be done to assist you?

Obtain your manager’s feedback.

Manage your relationship with your mentors.

Ask

What would really help me is a tool that I can carry with me that will constantly remind me of what my roles are for the year, as well as the tasks they encompass. Oh yes, also the gaps that I have to work on to increase my competencies.

Explain

To ensure that your Performance Management stays on track, keep a copy of the SMARTM process in your diary and refer to it regularly.

Take responsibility for receiving and giving input; this reduces management involvement.

Faster growth with less management involvement results in increased effectiveness.

Ask

My team leader said that Key Results Areas are central to an integrated growth plan and compensation.

What did he mean by that?

Answer

Let me explain.

Some of the concepts I will mention are explained elsewhere in this book. At this stage only understand the big picture.

Your integrated growth plan, and corresponding compensation is closely connected to managing your Contribution Zone. This zone is essentially the area of overlap between yourself, the company and the customer.

There are three focus areas that are especially relevant to monitor:

Career focus: What represents your interests? Where are you going in terms of your chosen career path?

Results focus: What represents the interests of the company? What results are expected from you? Are they agreed and communicated?

Customer focus: How effective are you? How satisfied are your customers?

The diagram below illustrates some of the mechanisms that will contribute to an integrated growth path.

The process of arriving at your Key Results Areas contribute to clarifying and communicating the agreed results expected from you. Thereafter your Key Results Areas help you stay on track in terms of the results expected from you: your roles, functions and tasks.Tools mentioned here to measure your effectiveness, like the Balanced Scorecard and the Order Cycle, are explained elsewhere in this book.

About Unre VisagieI am a master coach with 30 years of career and business coaching experience. I have built and sold many of my own multi-million dollar companies. I have always built my companies based on the principle of successful people make a successful company. I invest in people. As your coach you get 30 years of experience to help you do the work you love and earn the salary you want.

You are right, clear roles and strong boundaries make for good neighbors .
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Your all information very much helpfull for every one.

Industry jargon can be interpreted very widely for different situations.
Key performance areas
Key performance indicators
They all specify the key areas of activity of a job (area of work) focus.

Target setting is discussed in the pages above and must be S.M.A.R.T. and easily monitored daily, weekly and monthly. (Specific, Measurable, Accountable, Results and rewards, Time related)

It is best to let the JOB OWNER inform on tasks and results rather than the manager monitor. The manager just monitor the information. The manager respond to lack of information flow and the behind target information. Called EXCEPTION management.

Hi would you be able to give me examples of KRA;s and KPI’s for paraplanning department staff in financial planning.
I need to write a job description and list the above,while I know that they need to process documents using templates, information provided by financial planners ex their clients, be accurate and ensure that the plans and strategies comply with current rules and regulations i am finding it hard to separate and clearly articulate the KRA from the KPI
Marilyn

Hi, just checking in to see if you are available to make your world-class KRA concepts for paralegal department. we are in financing business and we want to develop our skills in coaching and mentoring. Thus, could you provide me a manual for my staff.

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